For Exit franchisees, what is the maximum number of days after the date of the Franchise Agreement that the Compliance Date can be?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
prior written approval of Subfranchisor. A second location or branch office will be subject to all of the terms, fees, and royalties set forth in this Franchise Agreement.
4. COMPLIANCE DATE
The operation of the Franchise by Franchisee shall begin and Franchisee's office shall open no later than the "Compliance Date" of this Agreement. The Compliance Date of this Agreement is the _______________ day of _________________, 20___. [INSERT DATE] The Compliance Date must be within, and cannot exceed one hundred and twenty (120) days of the date of this Agreement.**[It is customary to allow all franchisees the full 120 days even if they plan to open their office prior to the Compliance Date. The agreement is still in effect if they open prior to the Compliance Date.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Compliance Date, which marks the beginning of franchise operations, must be within 120 days of the Franchise Agreement date. This means an Exit franchisee has a maximum of 120 days from the date they sign the agreement to open their office and begin operations.
While Exit typically allows franchisees the full 120 days to open, the agreement remains in effect even if the franchisee opens earlier. The Compliance Date is significant because it marks the start of the performance evaluation period and the term of the franchise contract.
Failure to open the Exit office and commence business within this 120-day window constitutes a default under the Franchise Agreement, potentially leading to termination of the agreement by the subfranchisor after notice, without any opportunity to rectify the situation.